Dollar falls in Asian trade on financial turmoil
Wednesday, 17 September 2008
TOKYO, Sept 16 (AFP): The dollar fell to two-month lows against the yen in Asia today as the Lehman Brothers' bankruptcy sparked worries over the entire global financial system, analysts and dealers said.
The dollar was changing hands at 104.34 yen in Tokyo afternoon trade, down from 104.89 yen in New York late Monday. It was a sharp drop from the nearly 108 yen to the dollar before the Lehman collapse.
The greenback fell to a low of 104.03 briefly, the lowest level since July 16, with Lehman Brothers failing and insurer American International Group (AIG) seeking help.
The euro edged up to 1.4257 dollars from 1.4227 while falling to 148.78 yen from 149.07-17.
Traders saw little reason for market conditions to calm in the near term, meaning the dollar could break below 100 yen in the near term.
"The dollar could possibly be traded in a 95-100 yen range in a week or two," Jun Kitazawa, head of FX at Brown Brothers Harriman Investment Services, told Dow Jones Newswires.
The turmoil stemming from Lehman Brothers and other financial firms have sparked renewed talk that the Federal Reserve, which meets Tuesday, could lower rates to calm market turmoil.
But analysts said that any decision by the Federal Reserve could be interpreted as a negative for the dollar.
The euro also remained under pressure over gloomy prospects for the European economy. The dollar last Thursday soared to a 12-month high of 1.3882 against the euro.
"The euro is the weakest currency among the group of the dollar, yen and euro due to ongoing risk-aversion movements and falling crude oil prices," said Hiroshi Yoshida, a senior dealer at Shinkin Central Bank.
The dollar was mixed against Asian units.
It rose to 47.24 Philippine pesos from 47.07 on Monday, to 1.4312 Singapore dollars from 1.4308, to 32.17 Taiwan dollars from 32.05 and to 1,158.30 South Korean won from 1,106.75.
The dollar fell to 9,450.0 Indonesia rupiah from 9,462.5 and to 34.23 Thai baht from 34.55.
The dollar was changing hands at 104.34 yen in Tokyo afternoon trade, down from 104.89 yen in New York late Monday. It was a sharp drop from the nearly 108 yen to the dollar before the Lehman collapse.
The greenback fell to a low of 104.03 briefly, the lowest level since July 16, with Lehman Brothers failing and insurer American International Group (AIG) seeking help.
The euro edged up to 1.4257 dollars from 1.4227 while falling to 148.78 yen from 149.07-17.
Traders saw little reason for market conditions to calm in the near term, meaning the dollar could break below 100 yen in the near term.
"The dollar could possibly be traded in a 95-100 yen range in a week or two," Jun Kitazawa, head of FX at Brown Brothers Harriman Investment Services, told Dow Jones Newswires.
The turmoil stemming from Lehman Brothers and other financial firms have sparked renewed talk that the Federal Reserve, which meets Tuesday, could lower rates to calm market turmoil.
But analysts said that any decision by the Federal Reserve could be interpreted as a negative for the dollar.
The euro also remained under pressure over gloomy prospects for the European economy. The dollar last Thursday soared to a 12-month high of 1.3882 against the euro.
"The euro is the weakest currency among the group of the dollar, yen and euro due to ongoing risk-aversion movements and falling crude oil prices," said Hiroshi Yoshida, a senior dealer at Shinkin Central Bank.
The dollar was mixed against Asian units.
It rose to 47.24 Philippine pesos from 47.07 on Monday, to 1.4312 Singapore dollars from 1.4308, to 32.17 Taiwan dollars from 32.05 and to 1,158.30 South Korean won from 1,106.75.
The dollar fell to 9,450.0 Indonesia rupiah from 9,462.5 and to 34.23 Thai baht from 34.55.